The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-04-09
UNION PACIFIC REPORT.

The Union Pacific financial report for
1886, presented and published last week,
should give the stockholders hope and
courage. and ought also TO put stop TO
the annual appeals by the company to
Congress for relief. The gross earnings
of the Union Pacific Company proper,
for the year. were $l7 1906, 1888
against So, 1855, OBJ 81 for 1885; operating
expenses. $9,G85 77i.12, against $500,
62I d; taxes, $537, 654.z5. against $751;
733. 9G, and net earnings, Isl 500, 7ez.02,
against $8,4O4 ,676.3L The average
number of miles operated was ], 1872. As.
The Union Pacific system operates
1851 90 miles of road. Its gross
earnings for the year were $685.
O03, 1878, against So, e7z, 874.75 for
1865; operating expenses, $685.
10903. against S1U,083, 1925; taxes,
1,055 ;S0974, against $904, 058 %;
net earnings, 1895, 178.7l, against
SIS, 687 al %. After the payment of all
fixed charges and the deduction OF
Government requirements, the balance
applicable TO dividends in 1886 was
SIS 7z636s.5S, or 6.15 per cent. upon the
capital stock of the Union Pacific Rail
way Company, as compared with
$2,47I ,48I.18, or 4.e6 per cent. in 1885.
Although the net earnings OF the sys-
ten have decreased $693 1921, the
revenue from investments and miscel-
laneous sources has increased so that
the balance applicable to dividends is
81 ,275 2S7.22, or 5l:60 per cent. more |
than in 1885. OF the total funded debt |
of the system December 81, 1886, $t48,- |
$40. 1895, the public held $l48 ,233, 092 96,
and there were bonds for $637 800 in the
treasury OF the company. The debt per
mile of road was So ,10S.48. During the
year there was q decrease of 81, 92T ,435. GO
of the debt. Within thirty months the
company has wiped cut floating debt
OF s., 25a 1867 .6s, while the funded debt of
the system has Increased 1928 ,s32.5s.
and the investments in securities of
branch o. auxiliary companies de-
creased s26, 1928 IN new construction
and equipment $500, 600 has been. ex-
pended.
The figures indicate that thesearning
power ef the Eroad has been indus
triously cultivated, and that financial
ability hes had to co with the man
Rgement Of the corporation. There is
one feature Of the report which bears
out what has been said in these COL
umns so many times, namely, that
there would be more money for the
company if greater attention were de-
voted to the creation and develop
menr of local business. It's Pacific
Coast and through traffic fell of steadily
duriAg the year, but its local business
Increased, exceeding the falling of on
through business by s94z. 1855. The
Pacific Coast freight earnings amounted
TO oaly ~ per cent. Of the gross earn
ings OF the system. Until very recently
the Union Pacific has shown little or
nc disposition TO build up the country
tributary to its lines, the struggle al
the time being for through business.
The report says that the constant
danger of attack at Washington has
done much to hamper the compsny's
operations. That danger should, and
it is believed will, pass away when the
country b. comes convinced that the
company is being managed honestly,
and not with the view of defrauding the
Government. The showing made for
last year will do much towards estab-
fishing confidence in the honesty of the
management and in its disposition to
extricave the company from the deplor-
able condition into which it had been
thrown by incompetency, extravaganza
and dishonesty. When Mr.. Adams
shall become a little broader in his
mode of thought, and shall imbibe
something Of the spirit of the West,
there will be no trouble between the
Government and the Union Pacific, for
the latter viii be in a position to meet
its obligations promptly.
-
In - sai5 that tho reason tho ToueI